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🇹🇭 Thailand /Economy & Trade

Thai tokenisation takes off

From Bangkok Post · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Global real-world asset tokenization is growing, with the market projected to reach $16 trillion by 2030.
  • This transformation involves integrating traditional assets with blockchain technology, making them more accessible to investors.
  • Thailand is actively participating, with the Stock Exchange of Thailand and Kasikorn Bank developing tokenization frameworks and services.

The global tokenization of real-world assets (RWAs) is on a steady upward trajectory, with the market anticipated to reach $16 trillion by 2030. This trend signifies a major shift in the financial system, as traditional assets increasingly merge with blockchain technology. The industry is moving beyond small pilot projects towards utility-driven adoption.

The story has moved from pilot to plug-in, globally.

— Nurin NuntanawatDescribing the global progress of asset tokenization.

Major banks and asset managers are increasingly tokenizing short-term government bonds, commercial paper, and investment funds, offering investors relatively stable, low-risk yields. This process, facilitated by digital wallets and blockchain platforms, potentially reduces the complexity associated with traditional brokerage accounts. Furthermore, clearer regulatory frameworks and compliance standards are emerging, driven by entities like the Thai Digital Asset Operator Association (TDOA), providing a clearer path for financial institutions.

Thailand is actively embracing this transformation. The Stock Exchange of Thailand (SET) and Kasikorn Bank are collaborating to develop their own tokenization framework. SET plans to launch a full-scale commercial tokenization trading platform in July, initially targeting U.S. Treasury bonds and Russian Rubles, with plans to expand to other asset classes. Kasikorn Bank is partnering with a U.S.-based cryptocurrency exchange to issue blockchain-based shares.

We hope this will translate into approved securities tokenization products soon.

— Nurin NuntanawatExpressing optimism about future developments in Thailand's tokenization market.

Nurin Nuntanawat, President of the TDOA, noted that Thailand has already established a portal licensing regime under the Digital Asset Business Act in 2018. The Securities and Exchange Commission (SEC) also held a public consultation on a specific framework for tokenized green funds, expected to be introduced in 2025. "The story has moved from pilot to plug-in, globally," Nurin stated, highlighting the progress and potential for broader market access and ownership.

Thailand has had a head start on this, not just in a different asset class.

— Nurin NuntanawatHighlighting Thailand's proactive approach to tokenization.
DistantNews Editorial

Originally published by Bangkok Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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